July 1, 2020
More and more people prefer to skip paying with cash and pay with a credit or debit card. But there are many taking that a step further by ditching their physical cards and storing payment information into mobile wallets on smartphones and wearables.
Mobile payments take seconds to execute, making them a fast and convenient way to move money. The technology used to power mobile payments varies based on the app you choose, and the type of transaction you’re making, but most leverage bluetooth or Near Field Communication (NFC) technology which is readily available on phones and smart watches.
The rise of mobile payment app usage is growing exponentially. eMarketer predicts that 1 billion people will use a mobile payment app worldwide in 2020. IMARC also forecasts the global mobile payment market size to reach $3.1 billion by 2024. This represents a sizable increase from 2019 – a five-year compound annual growth rate of 23.2%.
Apple Pay (Tii:AAPL) and Google Pay (Tii:GOOGL) are arguably the most ubiquitous in the United States as their products come pre-loaded with the mobile payment app and can be easily linked to your Apple or Google accounts. These two platforms, along with PayPal (Tii:PYPL) account for about 800 million active users worldwide. Although this pales in comparison to the approximately 1.2 billion active users Alipay (Tii:BABA) and WeChat (Tii:TCEHY) each have globally, Apple Pay, Google Pay and PayPal round out the top three mobile payment apps in the U.S. on an active user basis.
The Cash app by Square (Tii:SQ) has been gaining traction as of late by promoting itself as “the fastest way to get your stimulus check.” Cash App is a mobile payment service that allows users to transfer money to one another, as well as invest in stocks and Bitcoin.
One additional brand we would like to highlight is Pushpay (Tii:PHPYF). Pushpay is a unique mobile payment app that provides a donor management system, including donor tools, finance tools and a custom community app, to the faith sector, non-profit organizations and education providers located predominantly in the U.S. Their solutions simplify engagement, payments and administration, enabling customers to increase participation and build stronger relationships with their communities.